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Business Segments
 6 Months Ended
Sep. 30, 2013
Business Segments

14. Business Segments

The Company reported its financial results in two reportable business segments: Wind and Grid.

Through its Windtec Solutions, the Wind business segment enables manufacturers to field wind turbines with highly competitive power output, reliability and affordability. The Company supplies advanced power electronics and control systems, licenses its highly engineered wind turbine designs, and provides extensive customer support services to wind turbine manufactures. Its design portfolio includes a broad range of drive trains and power ratings. It provides a broad range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility.

Through its Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power with highly competitive efficiency, reliability and affordability. The Company provides transmission planning services that allow it to identify power grid congestion, poor power quality and other risks, which help the Company determine how its solutions can improve network performance. These services often lead to sales of grid interconnection solutions for wind farms and solar power plants, power quality systems and transmission and distribution cable systems.

The operating results for the two business segments are as follows (in thousands):

 

 

Three months ended
September 30,

 

 

Six months ended
September 30,

 

 

2013

 

 

2012

 

 

2013

 

 

2012

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wind             

$

  14,691

 

 

$

  12,002

 

 

$

  29,392

 

 

$

  28,513

 

Grid             

 

  9,490

 

 

 

  8,865

 

 

 

  17,875

 

 

 

  21,070

 

Total             

$

  24,181

 

 

$

  20,867

 

 

$

  47,267

 

 

$

  49,583

 

 

 

Three months ended
September 30,

 

 

Six months ended
September 30,

 

 

2013

 

 

2012

 

 

2013

 

 

2012

 

Operating loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wind             

$

(2,449

)

 

$

(6,449

)

 

$

(4,274

)

 

$

(5,148

)

Grid             

 

(5,750

)

 

 

(6,572

)

 

 

(10,618

)

 

 

(11,915

)

Unallocated corporate expenses             

 

(2,829

)

 

 

(1,949

)

 

 

(4,985

)

 

 

(4,035

)

Total             

$

(11,028

)

 

$

(14,970

)

 

$

(19,877

)

 

$

(21,098

)

The accounting policies of the business segments are the same as those for the consolidated Company. The Company’s business segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measures are segment revenues and segment operating loss. The disaggregated financial results of the segments reflect allocation of certain functional expense categories consistent with the basis and manner in which Company management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. In addition, certain corporate expenses which the Company does not believe are specifically attributable or allocable to either of the two business segments have been excluded from the segment operating income.

Unallocated corporate expenses primarily consist of stock-based compensation expense of $2.2 million and $4.3 million for the three and six months ended September 30, 2013, respectively. Unallocated corporate expenses primarily consist of stock-based compensation expense of $2.0 million and $4.0 million for the three and six months ended September 30, 2012, respectively.

Total assets for the two business segments are as follows (in thousands):

 

 

September 30,
2013

 

  

March 31,
2013

 

Wind             

$

  50,304

  

  

$

  67,111

  

Grid             

 

  63,244

  

  

 

  72,800

  

Corporate assets             

 

  58,977

  

  

 

  76,843

  

Total             

$

  172,525

  

  

$

  216,754

  

The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and six months ended September 30, 2013 and 2012:

 

 

Three months ended
September 30,

 

 

Six months ended
September 30,

 

 

2013

 

 

2012

 

 

2013

 

 

2012

 

Beijing JINGCHENG New Energy Co., Ltd             

 

  28

%

 

 

  26

%

 

 

  31

%

 

 

  22

%

INOX Wind Limited             

 

  27

%

 

 

  19

%

 

 

  21

%

 

 

  17

%

Karara Mining Ltd             

 

<10

%

 

 

<10

%

 

 

<10

%

 

 

  13

%